Hope for a stronger Stockton

Just over a year ago, Stockton filed for bankruptcy, the largest municipality to ever seek court protection from its creditors.

The Record

Just over a year ago, Stockton filed for bankruptcy, the largest municipality to ever seek court protection from its creditors.

So far, so good, but there is still a long road to walk - possibly clear to the U.S. Supreme Court - before the city emerges from the thicket.

"We don't know where we're going to end up," said former Councilman Dale Fritchen, the only member to vote against bankruptcy.

Fritchen was wrong with his vote. The city clearly was out of options. But he is absolutely right in his concerns about how things may yet turn out.

Chief among them is the distinct possibility that the California Public Employees' Retirement System will be drawn into the city's bankruptcy. CalPERS provides city pensions under a contract that so far Stockton has honored.

San Bernardino, which also has sought bankruptcy protection, took a different route. It suspended its CalPERS payments, and the giant pension system is in a closely watched and likely expensive and drawn-out battle with that south state city. How that goes could affect how Stockton and other financially stressed cities deal with CalPERS.

We don't know how that will turn out. We do know some things about how Stockton is doing. It is negotiating with its creditors, trying to come up with an agreement the court will approve allowing the city to emerge from bankruptcy. We know the City Council probably will ask voters to approve a 3/4-cent sales tax increase to fund more police officers and pay creditors under whatever agreement is approved by the bankruptcy court. And we know that while the notoriety the city received by seeking court protection was not positive, neither did it cause the city to close its doors.

In fact, there are signs the city is growing more economically healthy. Home prices are up and unemployment is down. That will help the city in the long run, and it certainly helps its residents in the short run.

In many ways the toughest part of the bankruptcy process is still ahead, but coming this far gives hope that the city will come out the other side stronger and, we hope, wiser.